All Forum Posts by: Ben Rhodin

Hey @Jason Hawkins! This is a typical question, and I answer it with clients numerous times a week. It typically comes down to an emotional decision, but you have to take the whole picture first. Without knowing the full picture or what these properties look like, I would first try and steer you away from selling a rental to buy another primary. Since you are buying a primary, you can put a low downpayment, so it could be easy enough to instead of selling the rental, maybe just pull some equity out of it, enough for the Downpayment, and use that for your new primary. Your current primary may be the tougher of the two to make a rental, so I wouldn't bank on that. 

Reach out if you want me to do a full scrub of this scenario, and we can see what would be the best moves for you to make. I believe there is a good chance you can keep both properties.

Hey @Drew Patrick Dugan! Welcome to the forums, and a way to get your hustle on. Im local out of Arvada, and yea Erie is seeing tremendous growth and exposure. Have had a few clients explore opportunities there. Would be happy to connect and see how we can make something happen for you depending on what you are looking for!

Hey @Cindy Lindberg! Congratulations on your already great success, and seems you have your toes dipped in numerous ponds here. REI is just like a game of chess, you have all these pieces that you can move but you have to figure out the best time and order to do so!

Definitely think about your next primary before any other move, unless you are unable to solidify lending for it. This will be the quickest, easiest, and cheapest move to get into a new rental, especially if you buy a multifamily, or other property you can househack. Kill two birds with one stone.

I'm located in Arvada, and more than happy to connect and network! Ill shoot you over a quick DM.

Hey @Nathan Crankfield! I think that the answer has been clearly answered pretty well already. The only way "around" the regulation is if you can have your tenant get the license, and you manage the Airbnb and take the cashflow from it. Other than that, don't try to skirt the line unless you have a plan for when they shut you down and are cool with it. 

Being in Englewood, you are in a great spot to turn this rental over to MTR, and you will probably not experience that big of a decline in revenue, along with less turnover and headache for you. If you want to look into this option let me know, I currently have numerous clients doing MTR in that area with great success because of Swedish medical and Porter right around the corner.

Hey @Emily Holbrook! Welcome to the BP community and congratulations on your success so far! Colorado is still a great location for investors and can truly produce some great returns with the right-positioned asset and strategy. Are you targeting strictly LTRs or are you open to the more creative strategies of MTR/STR? Clients of mine, and I have found solid success in the MTR space, especially in the small multifamily space as it provides more flexibility and security than STRs and still provides a good cash flow compared to LTRs.

I would be more than happy to reacquaint you with the Denver market, as things are constantly changing, and there are some good pockets that are looking strong for the future. Ill shoot you a DM!

Hey @Benjamin Crowell! Most people have already touched on most of your concerns here, but I would encourage you to find a property that's already got a finished basement, and you simply have to add the finishing touches. As far as the city is concerned, you only should worry about permitting when you are making major changes to layout, square footage, plumbing, or electrical. If you are just doing cosmetic updates, don't bother with the city. If you are adding a full kitchen, then it's the same answer, The main issue that you'll run into is what everyone else already stated, it's the stove that is the issue. Depending on what strategy you are using, you may not need a full kitchen. I have quite a few clients around Anschutz that are currently doing this, and a lot of them were able to find properties that were fully turnkey. 

Ill reach out and Im happy to share some of my client's success.

Hey @Walter Jimenez! This is definitely not an uncommon question for people in your position. The biggest concern with the Travel nurse structure, and most any contract-based jobs is that a significant amount of the income is not taxable as it's stipends for living costs, etc. This is where it complicated things as far as traditional financing. The Owner occupied route would definitely be the ideal scenario, but chatting with a mortgage broker will be the best way to get the best picture of your financing ability.

Hey @Shirley Kocho! Welcome to the forums, and rest assured you aren't alone! I'm sorry to hear that no agents responded to you here in Colorado, that seems a bit out of the ordinary. But feel free to reach out to me directly and I am more than happy to assist you!

There is of course a reason why Denver and Colorado are so expensive and it is the same reason why it makes a great investing ground. It will also depend on your goals as an investor, if you are trying to get out of a job and retire ASAP, you will want to be chasing Cashflow, but if you are looking at it from a long-term perspective appreciation and wealth-building should be at the forefront which is where Colorado shines. 

@Dan Guenther started to hit on it, but I would always recommend investing in your backyard first, so you can get hands-on experience, minimize your risks and variables on the first one, and possibly take advantage of a low down payment loan where you could get into a $500,000 home for the same out of pocket expense as a ~$150,000 property out of state. That is the great thing about leverage in REI.

Hey @Jessica Tse! Starting so early, you are already well ahead of the curve, and personally, I wouldn't over think it. Since you are located in Denver currently, invest and purchase your first house hack here ASAP and start building that equity and lowering your living cost. The great thing about house hacking and REI in general is that it's fluid (mostly) and if something changes and something brings you back to Chicago you can keep your Colorado rental, and pick up a new one when you move to Chicago. That way you don't pigeon hole yourself into trying to decide the next couple years of your life before getting your first property, you always have the possibility to move if need be, and as long as you are able to self-manage from a far, or afford a property manager, and you ran your numbers correctly, you'll have left a cash flowing property behind.

Hey @Jose Vasquez! Definitely consult with a Tax advisor for tax-related questions. But you are in a great spot to start scaling your portfolio, and Greeley is a great expanding market that could get you there. 

As for your questions, my general rule of thumb is HELOCs are best served for short-term capital, and Refiances are best used for long-term capital. So I wouldn't recommend the HELOC for a downpayment unless you were rehabbing the property and planning to refinance shortly.

Your first step would be to get with a mortgage broker and figure out what your options are, as if you can qualify for conventional financing we open up a ton more options, than if you'll have to go the DSCR or commercial loan route. I agree with @Ben Einspahr that you should capture the low hanging fruit first. Are you able to reposition the duplex, as far as rental rates, or strategy in order to increase its cashflow? That won't cost you anything other than maybe some upgrades and furnishings, I know Greeley can do well for the MTR space, and have a few clients doing it up there right now.

Then the second option is your primary, can you move out of it, and get a new primary and make the current one a rental? That way you could take advantage of a low downpayment loan to create a rental unit, and if you buy a duplex or something with an ADU then you could create two with a single move.

Then after all of this, you can start thinking about the next steps, capital doesn't seem to be the issue, so I would focus on the financing portion and strategies from there. I am more than happy to discuss that further.